You spent considerable time deciding what vehicle to buy and how much to pay for it. After making up your mind, you arranged test drives, gathered a pile of paperwork and finally said ‘Yes’ to the deal.
But, hey, don’t believe that the car dealer will let you go so easily. There is a good chance that the dealer’s business manager will invite you to his office to offer an extended car warranty.
Be careful! Before shaking your hand with the salesperson take a look at the below and explore the upsides and downsides of auto dealership extended warranties with us!
How Long Do You Intend to Keep the Car?
The number one factor to consider before buying an extended warranty is how long you intend to keep your newly-purchased vehicle!
This is because you will get a chance to use your extended coverage only after the original manufacturer’s warranty expires which usually happens in three years.
Thus if you get so tired of your car that you sell it within the first three years of purchase, paying for an extended warranty doesn’t make much sense.
On the flip side, if you drive a car until the wheels fall off, buying an extended warranty is worth your consideration.
Who Stands Behind the Warranty?
Extended warranties are backed by both auto manufacturers and third-party providers. So which one to choose, you ask?
In fact, if you buy an extra coverage from a third-party, the warranty may require you to have your car served only by the dealership where you purchased the car. Plus, what if the provider goes bankrupt! You are quite right! You will lose your extended warranty!
With this in mind, make sure you buy an extra coverage from the manufacturer.
Have You Checked the Predicted Reliability of the Vehicle Yet?
If you don’t want to have a car sitting in the repair shops for ages, you will also need to consider the reliability of the car you are buying.
Buying a car with a record of low repair frequency means you may not need an extra coverage.
On the other hand, if your newly purchased car has a spotty repair history, it’s more than likely that your vehicle will need frequent repairs. That’s a hint that an extended warranty might be a good idea!
Do You Know What’s Covered?
Before purchasing auto dealership extended warranties, it is crucially important to do a little research to understand what your extended warranty covers since each manufacturer has different coverage plans which accordingly come at different prices.
The best thing about this is that you are absolutely free to decide between comprehensive and limited coverage.
So you can choose a plan that only covers the parts of your car that are most likely to break down and need to be repaired or replaced more frequently.
In a word, you can choose a plan that will fit your budget!
What’s the Best Alternative to Auto Dealership Warranties?
The worst thing about auto dealership extended warranties is that nothing is under your control.
You never know if after investing so much money on extra coverage your car will ever need costly repairs or will serve without giving you serious headaches.
Simply put, you may spend big bucks on a plan you never use or lose thousands of dollars in repair shops because of its absence.
In fact, auto dealership extended warranties are rather expensive and may add $1,000, $3,000 or more to the price of your vehicle.
So it’s difficult to say whether extended warranties are beneficial or no! If you will lose your peace of mind and have trouble sleeping once your car’s original warranty expires, buying extended warranties is justified.
However, there’s another option as well! Instead of investing thousands of dollars for an extended warranty, save some money for a rainy-day! If you ever face major repair costs, you won’t have a panic attack!
Still in Doubt?
If you still can’t decide what to do, call us right now at 818 553 1000! Our law experts at Margarian law firm are standing by to answer all questions you might have!